The Texas Department of Insurance published a bulletin announcing an increase in the rates charged by the Texas Automobile Insurance Plan Association (TAIPA) for private passengers and commercial auto insurance. TAIPA is the Texas residual market for automobile insurance; they provide insurance for applicants who have been denied by at least two Texas-authorized insurers.
TAIPA filed rates on March 12, 2024, which were approved by the commissioner of insurance. The overall rate increase is 15.0% for private passenger autos and 12.7% for commercial autos. The table below shows the increase in the base rate by coverage:
| Private Passenger Auto | Commercial Auto | |
| Bodily Injury (BI) Liability | 20.0% | 15.0% |
| Property Damage (PD) Liability | 10.0% | 10.0% |
| Personal Injury Protection | 0.0% | 0.0% |
| Uninsured/Underinsured Motorist BI | 20.0% | 10.0% |
| Uninsured/Underinsured Motorist PD | 15.0% | 10.0% |
| Total—All Coverages | 15.0% | 12.7% |
In seeking approval for the private passenger auto rates, TAIPA presented annual loss cost trends derived from the Quarterly Detailed Experience Report of the Texas Private Passenger Auto Statistical Plan. For the commercial auto insurance proposed rates, they relied heavily on severity trends derived from the 2022 Texas Commercial Auto Liability Benchmark Reports.
The commissioner's office reviewed the data and approved the proposed changes. The new rates are effective October 1, 2024, for new and renewal business.
The bulletin can be found here.